House Approves the National Guard and Reservists Debt Relief Act

HOUSE APPROVES THE NATIONAL GUARD AND RESERVISTS DEBT RELIEF ACT

Washington, D.C.–The U.S. House of Representatives unanimously approved S. 3197, the National Guard and Reservists Debt Relief Act, which is virtually identical to H.R. 4044 introduced by U.S. Representatives Jan Schakowsky (D-IL) and Dana Rohrabacher (R-CA). H.R. 4044, which passed the U.S. House of Representatives with unanimous support in June 2008, would allow Reservists and National Guard Members to file for bankruptcy relief without the burdens imposed by the current bankruptcy law. The bill will now be sent to the President's desk for his signature.

"Now that the bill has passed both the House and Senate we are only one step away from providing modest financial relief to Reservists and Guard Members who are struggling to make ends meet because of their service. The current financial crisis has hit military families particularly hard by making it even more difficult to rebound,... said U.S. Representative Jan Schakowsky (D-IL). "I urge the President to sign this bill into law immediately so we can help these service men and women get back on their feet. The sooner that we provide this benefit, the easier it will be for our service men and women to recover from the financial hardship they have had to endure while serving our country....

"Today's final passage of our bill to provide a financial helping hand to our National Guardsmen and Reservists in one of the better examples of bipartisanship,... said U.S. Representative Dana Rohrabacher (R-CA). "It is only fair we protect our brave defenders from the harsh financial consequences active duty can bring upon their lives. The final approval of this bill is long overdue and with the President's signature, Guardsman and Reservists who are unable to repay debts as a result of their service, will now be given a well deserved financial break....

The National Guard and Reservists Debt Relief Act would make it easier for soldiers to file for bankruptcy by eliminating the means tests for those serving for more than 90 days in Iraq and Afghanistan. This exemption currently exists for disabled veterans. The Bankruptcy Abuse Prevention and Consumer Act, which became law in 2005, made it more difficult for members of the National Guard and Reservists to file for Chapter 7 bankruptcy by placing tougher restrictions on the dismissal of debt.